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Consumers

Other Investment and Tax Incentives

Date: 
December 17, 2010
Who: 
IRS
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Economic Target: 
Manufacturers
Economic Target: 
Other Business
Action Type: 
Tax Break
Maximum Amount: 
$156.81 billion
Deficit Impact: 
$77.18 billion

The 2010 tax cut package included a provision that would temporarily allow businesses to immediately write off the costs of equipment for the next two years. In addition, the package included a number of tax extenders that provide various targeted benefits.

Source: 

CBO Cost Estimate

Notes: 

Maximum amount represents peak cost of these provision in the ten-year window. Deficit impact represents net costs of these provision from 2011-2020. Because the cost of the business expensing will be partially recouped after it expires, there is a significant difference between these two numbers.

Estate Tax Change

Date: 
December 17, 2010
Who: 
IRS
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Economic Target: 
Other
Action Type: 
Tax Break
Maximum Amount: 
$68.15 billion
Deficit Impact: 
$68.15 billion

The tax cut package included a lower estate and gift taxes for the next two years, providing a higher exemption threshold and a lower rate for estate and gift transfers beyond that threshold. The exemption was raised to $5 million and the rate set at 35 percent, compared to a $1 million exemption and 55 percent rate as previously scheduled under current law for 2011 and lower than the Administration's initial proposal of a $3.5 million exemption and a 45 percent tax rate beyond that.

Source: 

CBO Cost Analysis

Notes: 

Maximum amount and deficit impact represent peak and net cost of this provision--which are the same--from 2011-2020.

CRFB Analysis of Estate Tax Options and Costs

Payroll Tax Holiday

Date: 
December 17, 2010
Who: 
IRS
Who: 
Various Agencies
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Action Type: 
Tax Break
Maximum Amount: 
$111.65 billion
Deficit Impact: 
$111.65 billion

The tax cut package included a one-year payroll tax cut of two percentage points on the employee side of the FICA tax, reducing the tax for employees from 6.2 percent to 4.2 percent.

Source: 

CBO Cost Estimate

Notes: 

Maximum amount and deficit impact represent the peak and net cost of this provision--which are the same--from 2011-2020.

2-Year AMT Patch

Date: 
December 17, 2010
Who: 
IRS
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Action Type: 
Tax Break
Maximum Amount: 
$136.68 billion
Deficit Impact: 
$136.68 billion

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act included a two-year "patch" of the Alternative Minimum Tax (AMT).

Source: 

CBO Cost Estimate

Notes: 

Maximum amount and deficit impact represent the peak and net cost of this provision--which are the same--from 2011-2020.

2-Year Extension of 2001/2003 Tax Cuts

Date: 
December 17, 2010
Who: 
IRS
Economic Target: 
Consumers
Economic Target: 
Other Business
Action Type: 
Tax Break
Maximum Amount: 
$407.64 billion
Deficit Impact: 
$407.64 billion

The 2010 tax cut included a two-year extension of all the provisions from the 2001/2003 tax cuts.

Source: 

CBO Cost Estimate

Notes: 

Maximum amount and deficit impact represent gross and net cost, respectively, of this portion of the bill from 2011-2020.

2010 Tax Cut

Who: 
Congress
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Economic Target: 
Other Business
Action Type: 
Direct Spending
Action Type: 
Tax Break
Maximum Amount: 
$937.44 billion
Deficit Impact: 
$857.81 billion

With the initial expiration of ther 2001/2003 tax cuts set for December 31, 2010, lawmakers acted to prevent the tax cuts from expiring. The 2001/2003 tax cuts were extended for all taxpayers for two years, beyond the President's initial proposal of extending them only for those earning under $200,000 ($250,000 for couples).

Notes: 

Maximum amount represents peak cost of provisions in the ten-year window. Deficit impact represents net impact of the bill from 2011-2020.

CRFB Commentary on Tax Cut Package

Food Stamps

Date: 
December 24, 2009
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Action Type: 
Direct Spending
Maximum Amount: 
$0.50 billion
Amount Spent: 
$0.50 billion
Deficit Impact: 
$0.50 billion

The Department of Defense appropriations bill contained a provision to extend the Supplemental Nutrition Assistance Program (SNAP), or food stamps, while also providing more funding to help cover state administration costs fo the program and to speed up the processing of applications.

Extended food stamp program funding was originally passed as part of the American Recovery and Reinvestment Act.

Notes: 

Cost reflects the total deficit impact of the provision, calculated by using CBO estimates of extensions from ARRA in the jobs bill (as passed by the House on December 16, 2009, found at http://www.cbo.gov/ftpdocs/108xx/doc10874/hr2847.pdf) but altered to reflect a two month extension in funding for the program.

Worker, Homeownership, and Business Assistance Act

Date: 
November 6, 2009
Who: 
Congress
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Economic Target: 
Housing
Action Type: 
Direct Spending
Action Type: 
Tax Break
Maximum Amount: 
$48.33 billion
Deficit Impact: 
-$0.04 billion

The Worker, Homeownership, and Business Assistance Act of 2009 passed in November 2009 included several extenders on provisions under the American Recovery and Reinvestment Act.

Extended through Defense Appropriations Bill

Date: 
December 24, 2009
Who: 
Dept. of Labor
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Action Type: 
Direct Spending
Maximum Amount: 
$11.30 billion
Amount Spent: 
$11.30 billion
Deficit Impact: 
$11.30 billion

In the Department of Defense appropriations bill, an additional $13.6 billion in funding for unemployment insurance and benefits was included. The amendment included increased benefits and increased the number of weeks unemployed workers can be eligible for benefits by 20 weeks, from 79 to 99 weeks in the highest unemployment states. Unemployed workers are now eligible to receive 99 weeks of benefits beginning now through February 28, 2010.

Notes: 

Estimates from CBO show a total cost of $11.3 billion for the increase in benefits.

Extended through Defense Appropriations Bill

Date: 
December 24, 2009
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Action Type: 
Tax Break
Maximum Amount: 
$6.00 billion
Amount Spent: 
$6.00 billion
Deficit Impact: 
$6.00 billion

As part of the Department of Defense appropriation bill passed in late December 2009, $6 billion was provided for COBRA health insurance subsidies. Under the bill, COBRA subsidies of 65% were expanded from nine to 15 months for recently unemployed workers, bringing the new eligibility threshold date to February 28, 2010. 

Extended COBRA subsidies were originally passed as part of the American Recovery and Reinvestment Act.

Notes: 

Updated estimates from CBO now project lost revenues from the COBRA subsidy to equal $6 billion over the 2010 -2011 period.

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